Commission proposes to remove restrictions
on radio spectrum for innovative wireless services

The Commission today proposes measures to make it
easier and more lucrative for mobile operators in Europe to offer and develop
innovative wireless technologies. By opening radio spectrum for advanced mobile
data and multimedia services (such as 3G services that allow video streaming and
fast downloads on a mobile handset), the Commission proposals, if they become
law, will increase the number and choice of wireless services available, and
will expand their geographic coverage to the benefit of all European citizens.
The new EU measures will also reduce network deployment costs for Europe's
wireless communications industry.

"Radio spectrum is a crucial economic resource which must be properly
managed across Europe to unlock the potential of our telecoms sector," said
Viviane Reding, the EU's Telecoms Commissioner. "In the EU, we must therefore
remove regulatory barriers and facilitate the deployment of mobile
communications by allowing new technologies to share spectrum with existing
ones. This proposal is a concrete step towards a more flexible market driven
approach to spectrum management in Europe. It will increase competition in the
use of spectrum bands and enhance accessibility of European citizens to
multimedia services."

Mobile networks can best operate using low frequency bands, such as the
frequency bands used today by GSM mobile phones. In line with the Barroso's
Commission drive for better regulation (see IP/05/96),
the Commission proposes to repeal the GSM Directive of 1987. This Directive at
the time helped make GSM a success in Europe by allocating certain radio
frequencies (900 MHz and 1800 MHz) to GSM services. Today, it is out of date as
it prevents more advanced, next generation wireless technologies from using the
spectrum currently reserved to GSM services.

To respond to technological changes and to the emergence of new pan-European
communications services, the Commission proposes, together with the repeal of
the GSM Directive, a new Decision that will allow new technologies to coexist
with GSM in the frequencies of 900 MHz and 1800 MHz, while preserving the
continued operation of GSM in the EU.

This new Decision has been prepared by the Commission alongside national
radio spectrum experts. Based on technical studies by Europe's association of
spectrum and telecom authorities, CEPT, it aims to ensure harmonious coexistence
of the various systems in and around this spectrum band within the European
Union and its neighbouring countries.

In the Commission's assessment, the proposed measures will have a positive
economic effect on the sector and promote the take-up of new wireless services.
Estimates given by the sector itself suggest that in Europe the wireless
communications industry may achieve cumulative capital expenditures reductions
of up to 40% in network costs over five years.

The proposed repeal of the GSM Directive requires the formal approval of the
European Parliament and EU Council of Ministers. The Decision simply awaits
formal adoption of the Commission. All measures proposed are expected to be in
place by the end of this year.

Background:

Today's Commission proposals are part of a whole package of measures to
implement the Commission's strategic approach to promote a more flexible use of
spectrum, an important element of the reform of the EU Telecom Rules (see IP/06/874),
as stated in the Commission's Communication on "Rapid access to spectrum for
wireless electronic communications services through more flexibility" (see IP/07/205).
By adapting the regulatory environment to facilitate the deployment of advanced
mobile communications, today's proposals contributes to the objectives of the
i2010 initiative which promotes an open and competitive internal market for
information society and media services for the benefit of European citizens
(see
IP/05/643).